Sponsors have more flexibility at X Games

After more than a decade of
defining sponsors as gold and associate-level partners, the X Games has dropped
those categories and will define partners as media and X Fest sponsors.

The change, which will be
visible when Winter X Games opens in Aspen, Colo., on Thursday, reflects an
evolution in how ESPN approaches sponsorship sales for the X Games property.
The company is eschewing categories in favor of designing more customized
partnerships that meet the needs of individual brands associated with the X
Games.

“As part of our effort to provide more custom solutions for
clients, we’re allowing more flexibility,” said Eric Johnson, ESPN’s executive
vice president of multimedia sales. “At Winter X you will see a glimpse of the
transition to a broader base of sponsors, levels and categories. Sponsors can
choose to be involved on-site, online, in program, depending on which of those
executions meets their specific objectives.”

Marketers praised the
move, saying the property is moving from what has amounted to a fixed menu of
sponsorship assets to an a la carte menu from which sponsors can pick and choose.
As a result, sponsors will be able to be more efficient with their spend
against the X Games and better use the property to meet their brand goals.

“This is a smart decision
that meets the needs of sponsors who are looking for customized marketing,”
said Issa Sawabini, a partner at youth marketing agency Fuse. “It will help the
property continue to grow and attract new sponsors.”

ESPN lost several longtime
sponsors for this X Games. Edge Shaving Gel, PlayStation and Totino’s pizza
rolls all discontinued their partnerships. Totino’s dropped its X Games
association in favor of a new partnership with NBC’s Dew Tour, and PlayStation
declined to renew its ad buy around the property. Details about Edge’s decision
were unavailable at press time.

The X Games sales team made
up for the lost sales revenue by signing four media sponsors, 13 X Fest
sponsorships and selling four hospitality suites (see chart). The four media
partners — Navy, Taco Bell, Jeep and Axe — will enjoy the highest level of X
Games rights, including on-site signage, on-site activation, rights to the X
Games marks, and media across ESPN’s print, digital and TV platforms.

Terms of those deals were
unavailable. Gold and associate-level sponsorships that included similar rights
in the past were valued at more than $2 million and $1 million, respectively.

X Fest sponsors receive a mix of rights including video board
exposure, branding in a spectator guide, and on-site activation rights in a
specially designed area that also features a snow park for spectators. Some X
Fest sponsors supplemented their packages with media. For example, Oakley will
activate on-site and have online advertising.

ESPN also sold hospitality
suites again for Winter X. Last year it sold three hospitality suites for the
first time. This year it sold four suites, which are located on-site and
provide the same food and beverage offerings as suites at professional sports
arenas.

Some hospitality buyers
such as Target, which sponsors Shaun White, Simon Dumont and other action sports
athletes, simply bought an unbranded hospitality suite on-site where it can
entertain clients and guests. Others, such as Vitaminwater, will supplement its
suite presence with signage around the venue.